There are currently 52 UK-focused private equity real estate funds seeking capital. Data from Preqin Investor Network, which tracks these 52 funds, shows that they have an aggregate target size of over $20.5bn and an average size of $395mn. Thirty of these vehicles are managed by firms located in the UK and 10 are managed by US-based managers. The remaining 12 funds are managed by firms located in various Western European countries and there is also one firm based in Saudi Arabia.
Offices are the most popular property type targeted by UK-focused vehicles, with 36% of funds currently raising capital planning to gain some exposure to them. Retail and commercial properties are the next most popular property types, with 33% and 17% of UK-focused funds looking to invest in them respectively. Fifteen percent and 12% of UK-focused vehicles seek investment opportunities in industrial and residential properties respectively.
In terms of targeted capital, three of the largest UK-focused private equity real estate funds in market include Westbrook Real Estate Fund IX, targeting $2bn, UBS (D) European Mega Core Property Fund, targeting €1bn, and M&G Investments Real Estate Debt Fund II, targeting £500mn.